New Delhi: The CBI on Friday registered a case against Satyam’s tainted founder B Ramalinga Raju and others for their alleged involvement in what it called a unique accounting fraud at the IT company, and formed a 16-member team to complete the probe at the earliest.
Describing the scam as “unique,” a CBI spokesman said the case has been registered against Raju, the company’s erstwhile directors and its auditor under various sections of the Indian Penal Code relating to forgery and cheating.
CBI has constituted a Multi-disciplinary Investigation Team (MDIT) headed by Deputy Inspector General V V Lakshmi Narayana which will be headquartered in Hyderabad to undertake a thorough probe, the spokesman said.
The case against them was registered under 120-B (criminal conspiracy), 409 (criminal breach of trust), 420 (cheating), 467 and 468 (forgery), 471 (using forged document as genuine), 477-A (falsification of accounts).
Superintendent of Police of the CBI at Hyderabad will be the Chief Investigating Officer. Apart from these officers, MDIT will consist of a Superintendent of Police, Bank Securities and Fraud Cell (BSFC) and 11 other officers of CBI.
An Assistant General Manager of the SBI (CBI’s technical officer), will also be part of this team, the spokesman said.
Besides Raju, his brother Rama Raju, Chief Financial Officer Srinivas Vadlamani, G Gopalakrishnan and Srinivas Talluri have been arrested in the case.
The case was handed over to the CBI on 18 February by the Centre after a request for the same was received from the Andhra Pradesh government.
The CBI spokesman said while five experienced Chartered Accountants have been nominated by the Institute of Chartered Accountants of India (ICAI), two experts from the Institute of Cost and Works Accountants of India (ICWAI) will also form part of this team.
Cabinet Secretariat has promised to provide “necessary support” of the Departments, Ministries and Institutions like Sebi, Income Tax, Serious Fraud Investigation Office, Registrar of Companies, Enforcement Directorate and the Revenue Department of Andhra Pradesh government.
These organisations are already looking into various aspects of the scam.
The Andhra Pradesh High Court has also directed the state government to provide all logistics and other necessary assistance to CBI for this case.
As the case is transferred to the CBI, the agency can now avail up to nine days of custody of Raju, founder of the Hyderabad-based IT major, who has been interrogated only for five days since his arrest on 10 January.
On 7 January, Raju confessed to the Rs 7,800 crore fraud and accepted that he had cooked company’s account books and inflated profits over the last several years.